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| The Tax Publishers2019 TaxPub(DT) 3934 (Mum-Trib) INCOME TAX ACT, 1961
Section 271(1)(c)
Where purchases were made by assessee under bona fide belief and in good faith and suppliers were genuine, then, explanation of assessee was plausible one and overall conduct of the assessee did not inspire Tribunal to confirm penalty imposed under section 271(1)(c).
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Penalty under section 271(1)(c) - Validity - Addition towards bogus purchases but explanation of assessee found to be plausible -
Assessee challenged order of CIT(A) confirming order of AO imposing penalty under section 271(1)(c) in respect of alleged addition towards bogus purchases without appreciating that there was no concealment of any income nor assessee furnished any inaccurate particulars of his income. Held: Upon perusal of assessee's submissions during appellate proceedings, it was found that assessee's plea revolved around the fact that purchases were made under bona fide belief and in good faith that suppliers were genuine. The suppliers used to visit assessee's shop to supply the material as per routine practice. TIN of the suppliers was found active at the time of purchase of goods. Thus, explanation was found to be plausible one and the overall conduct of assessee did not inspire Tribunal to confirm penalty.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, MUMBAI BENCH
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